Grants for minority-owned businesses in 2026: what is actually open

Last updated: September 2026

Most "minority business grant" lists recycle the same five programs, half of which closed applications two years ago. We checked every program below against its own website on 24 September 2026, and we list the famous ones that have closed separately so you do not waste an application. This guide covers what is open now, SBA 8(a) under its new 2026 rules, SBIR/STTR, supplier certification, and five state programs. For broader small business funding, see our complete small business grants guide. For Black-owned businesses specifically, our grants for Black-owned businesses guide goes deeper on race-specific programs.

Last reviewed: September 2026 Next review: December 2026

Bottom line up front

Open now: Galaxy Grants for women and minority owners ($2,500, closes October 31, 2026), Verizon Small Business Digital Ready ($10,000, 10 a month), NASE Growth Grants, and SBIR/STTR (Phase I up to $323,090).
Federal contracting: SBA 8(a) sole-source contracts up to $5.5M ($8.5M manufacturing); since September 10, 2026 each owner shows social disadvantage individually.
Closed: FedEx grant contest (retired), Google for Startups founders funds (past programs), Comcast RISE (no 2026 round).
How to apply: apply to open grants now, get state MBE/MWBE or NMSDC certification, and prepare 8(a) with your own evidence at certifications.sba.gov.

Quick picks by category 🏆 Best federal program: SBA 8(a) Business Development, sole-source contracts up to $5.5M, 9-year program
💰 Open grant: Galaxy Grants, $2,500 for women and minority owners, closes October 31, 2026
⚡ Largest open grant: Verizon Small Business Digital Ready, $10,000, 10 grants a month
🎯 Best for tech founders: SBIR/STTR, Phase I up to $323,090 at most agencies

Search the full federal grant database The programs below are our top picks. Grants.gov listed 940 open federal funding opportunities on 24 September 2026. Search the Grant Map to browse active opportunities by category and eligibility.

Federal programs: SBA 8(a), SBIR/STTR, and MBDA

SBA 8(a) Business Development Program

8(a) is a 9-year program (4 developmental and 5 transitional years) that gives certified firms access to set-aside contracts and sole-source federal contracts up to $5.5 million ($8.5 million for manufacturing) without competition, plus mentoring and joint ventures. It is not a grant.

Eligibility in 2026: at least 51% owned and controlled by U.S. citizens who are socially and economically disadvantaged; personal net worth under $850,000 (excluding the business and home equity); generally two years in business (waivable); small under SBA size standards. Since September 10, 2026 (Federal Register 2026-16370), individually owned applicants no longer get a presumption of social disadvantage based on race or ethnicity: each owner must show bias or discrimination they personally experienced and the harm it caused. Apply at certifications.sba.gov.

SBIR/STTR

SBIR and STTR fund research and development at U.S. small businesses of every background through 11 federal agencies: Phase I up to $323,090 and Phase II up to $2,153,927 at most agencies. Both programs lapsed from October 2025 until they were reauthorized on April 13, 2026 through 2031. NSF's I-Corps program is a common on-ramp. Register at SBIR.gov; see our startup grants guide.

MBDA Business Centers

MBDA funds Business Centers that give free consulting, loan packaging and contract help to minority-owned firms; it does not make grants to businesses. A March 2025 executive order cut the agency and ended many center awards; a federal court vacated those actions in November 2025 and the government has appealed. Confirm your local center is operating at MBDA.gov before relying on it.

CDFIs and farm programs

Community Development Financial Institutions (certified by the U.S. Treasury's CDFI Fund) lend to underserved businesses with more flexible underwriting, and some administer small grant programs. For farms, USDA's former 2501 program now runs as Outreach and Assistance for Veteran Farmers and Ranchers, funding organizations that train and advise veteran farmers; since July 2025 USDA no longer uses a race- or sex-based "socially disadvantaged" designation for program benefits where the law does not require it.

Private grants: what is open now

Galaxy Grants: $2,500, closes October 31, 2026

Galaxy Grants, run by the nonprofit Hidden Star, awards grants throughout the year to women and minority business owners in the U.S. at any stage. The current grant is $2,500, applying is free, and the deadline is October 31, 2026. Apply at galaxyofstars.org.

Grants open to any small business

Verizon Small Business Digital Ready pays $10,000 to 10 businesses a month through December 2026 (free; complete two courses first). NASE Growth Grants pay up to $4,000, reviewed quarterly ($120 membership). The Freed Fellowship awards $500 a month. Create a free Hello Alice profile to be told when new sponsored rounds open.

National Black MBA Association Scale-Up Pitch Challenge

A $50,000 grand prize at NBMBAA's annual conference. Its published rules require at least one founder to be an NBMBAA member, an early-stage venture, and a Black founder with at least an equal ownership stake. Check nbmbaa.org for current dates.

State programs: five states with strong minority business support

Most state help is certification and contracting preference rather than cash grants.

State	Program	What it gives you	Apply
California	CalOSBA and GO-Biz	Technical assistance centers; periodic grants (innovation grants $25K-$100K)	GO-Biz
New York	MWBE certification (Empire State Development)	State contracts with a 30% MWBE participation goal	ESD.ny.gov
Texas	HUB certification	State procurement goals for historically underutilized businesses	TX Comptroller
Georgia	Georgia Minority Supplier Development Council; ACE	MBE certification; CDFI loans from Access to Capital for Entrepreneurs	aceloans.org
Illinois	Business Enterprise Program (BEP)	State contracts with a 30% participation goal	Illinois CMS

How to apply: step-by-step with timeline

Applying to minority business grants follows a consistent process regardless of the specific program. Here's the timeline from preparation to funding.

Weeks 1-2: Gather documentation. Every grant requires these baseline documents: business registration or incorporation documents, EIN (Employer Identification Number), two years of tax returns (personal and business), current profit-and-loss statement and balance sheet, bank statements (last 3-6 months), and proof of minority ownership (typically a personal affidavit or third-party certification). For women-owned businesses that also qualify as minority-owned, see our women's grants guide for additional certification pathways.

Weeks 2-3: Get certified. Minority business certifications dramatically improve your competitiveness. The three most valuable: SBA 8(a) certification (federal), NMSDC MBE certification (corporate supply chains), and your state's minority business certification (state contracts). You can hold all three simultaneously. Start with your state certification, it's typically the fastest (2-4 weeks) and provides documentation you'll reuse for federal certification.

Weeks 3-4: Write your applications. Most grants require a business narrative (1-3 pages), a budget showing how you'll use the funds, financial projections for 12-24 months, and impact metrics (jobs created, communities served, revenue growth). Our grant proposal writing guide covers each section in detail. Apply to several programs at once: most competitive grants turn down most applicants, so volume is your best strategy.

Weeks 5-12: Wait and follow up. Federal programs (SBA 8(a), SBIR) take 60-90 days. Private grants usually decide within weeks to a few months. State programs vary from 30 to 120 days. Follow up once at the midpoint of the stated review period, a professional check-in email to the program contact person. Do not call weekly.

Week 12+: Receive funding and report. Most grants require periodic reporting, quarterly or semi-annual updates on how funds were used and what results were achieved. Build reporting into your workflow from day one. Non-compliance with reporting requirements can disqualify you from future programs.

Pro tip Apply to both minority-specific and general small business grants simultaneously. A Hispanic-owned tech startup could realistically target SBIR through NSF, Galaxy Grants, Verizon Digital Ready, state certification and, if it sells to government, SBA 8(a), all in a single quarter. See our complete grants guide for the full list of general programs.

📬 Get our free grant deadline calendar (PDF), with the programs open now

Frequently asked questions

What qualifies as a minority-owned business for grants?

A minority-owned business is one that is at least 51% owned, operated, and controlled by one or more individuals who identify as Black or African American, Hispanic or Latino, Asian American, Native American or Alaska Native, or Native Hawaiian or Pacific Islander. Most federal programs use the SBA's definition of "socially disadvantaged individuals." Since September 10, 2026, SBA 8(a) no longer presumes social disadvantage based on race or ethnicity; each owner shows it individually. Certification through your state or the NMSDC provides formal documentation of minority status.

Do I need a minority business certification to apply for grants?

Not always. Private grants set their own rules; many now use race-neutral criteria. Federal programs like SBA 8(a) have their own certification process built into the application. However, having NMSDC MBE or state minority certification strengthens any application because it provides third-party validation. Certification also unlocks corporate supplier diversity programs and state contract preferences, benefits beyond grants alone.

Can I apply for multiple minority grants at the same time?

Yes. There is generally no restriction on applying to multiple grant programs simultaneously, and doing so is strongly recommended. A minority-owned business can hold SBA 8(a) and state certification, apply to Galaxy Grants and Verizon Digital Ready, and pursue SBIR in the same quarter. Each program has independent eligibility and evaluation criteria. The only exception: some programs prohibit using their funds for the same expense already covered by another grant, you can receive multiple awards, but each must fund different activities.

Are minority business grants taxable?

Yes. For for-profit businesses, grant income is generally treated as taxable revenue by the IRS and your state tax authority. The grant funds themselves are taxable, but expenses paid with those funds are typically deductible, offsetting the tax burden. For example, a $50,000 grant used to hire two employees would generate $50,000 in taxable income but also create salary deductions. The net tax impact depends on your business structure and tax bracket. Consult a tax professional familiar with grant accounting.

What is the easiest minority business grant to get?

Galaxy Grants is among the easiest: a free, one-minute application for women and minority owners ($2,500, closes October 31, 2026). Verizon Small Business Digital Ready ($10,000) takes two short courses first. For the highest long-term value, SBA 8(a) has the most complex application but opens set-aside and sole-source federal contracts. Start with one easy application, then pursue the higher-value programs.

Bottom line

The gap between available minority business funding and actual utilization is enormous, billions in federal contracts, private grants, and state programs go undersubscribed every year because qualified minority entrepreneurs don't apply. The strongest opportunities in 2026 are SBA 8(a) for long-term contract access (under its new rules), SBIR/STTR for R&D companies, open grants such as Galaxy Grants and Verizon Digital Ready, and state certification for local contracts.

Start with the programs that match your business stage. Pre-revenue startups: Galaxy Grants and state or local programs. Revenue-generating businesses: SBA 8(a), NMSDC certification, and Verizon Digital Ready. Established firms: SBIR/STTR, MBDA center engagement, and state contract programs. Apply to multiple programs simultaneously, volume and persistence win in the grants game. For step-by-step application support, our grant proposal writing guide covers every section reviewers evaluate.